One of the reasons is the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations

MOSCOW, July 10. /TASS/. Russia's Central Bank has revoked the license of Aldanzolotobank in the far eastern Russian region of Yakutia, the regulator said on Friday.

The central bank said Aldanzolotobank had its license cancelled starting from July 10 because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, and due to repeated violations within one year of the requirements of the legislation on anti-money laundering and combatting financing of terrorism.

Aldanzolotobank also failed to create provisions against risk and build sufficient reserves to cover potential losses on loans, the central bank said in a statement, adding that the credit institution was involved in "dubious operations", such as large-value cash withdrawals abroad.

The regulator said it had appointed a provisional administration to Aldanzolotobank for the period until the appointment of a receiver or a liquidator. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended, it said.

Aldanzolotobank is a member of the deposit insurance system. The revocation of the banking licence is an insured event.

According to its financial statements, as of 1 July 2015, Aldanzolotobank ranked 587th by assets in the Russian banking system.